Small business ownership can be a risky endeavour. You can protect yourself from business debts by forming a corporation. Incorporating your business may seem like a waste of time and money, but the legal and tax benefits are well worth the extra paperwork and outlay. And whether you are just thinking about starting a business or are already running it as a sole proprietorship or general partnership, you may wonder if you should also incorporate it. Learn the potential advantages of incorporating a business in Singapore and how company incorporation upsides can outweigh the costs.
1. Grow your corporation for the present and future
Integrating increases trustworthiness and can help you attract new clients. While your lifespan has a finite limit, a corporation does not. After the passing or sale of an owner, the corporation continues to function independently.
2. Protect your assets
One of the best ways to safeguard your possessions in Singapore is through company incorporation. Corporations have the legal capacity to acquire property, operate businesses, take on debt, and initiate or respond to legal proceedings.
A corporation is responsible for its debts. It means that the assets of the shareholders, directors, and officers of a corporation cannot be attached by its creditors to satisfy the debts of the corporation. In practical terms, entrepreneurs need not worry about losing their homes, cars, savings, or other valuables while running their businesses.
3. Perpetual corporate existence
Corporations are the most reliable form of organisation under the law. No matter what happens to its directors, officers, managers, or shareholders, a corporation can exist forever. Thus, if you’re concerned about getting into legal trouble about your business registration in Singapore, you might be able to avoid problems if you form your company as a corporation instead of another business structure.
4. Easy access to funds
In Singapore, a work visa is not enough to secure your company funds, ownership in a company can be bought and sold at any time. Selling shares of stock is a common way to get money. And lending institutions often give priority to loan requests from businesses.
A corporation can issue stock shares—making it easier to raise capital. It could facilitate the expansion of your company. There is the additional benefit of being able to apply for a bank loan after incorporation. Most banks prefer lending to corporations over unincorporated business ventures.
To secure an EP in Singapore, ask Paul Hype Page & Co for guidelines.
